A glimmer of hope is breaking through the gloom for the 40 staff made redundant through the closure of a Teesside training centre.

Both Middlesbrough Council and Walker Hall Associates have plans which could mean workers at the former TAD Centre in Middlesbrough can be found new jobs. But there is a lot of work to be done before anyone can start building up hopes.

TAD had a contract with Business Link Teesside for business start-up support and to help people become self-employed, said Jeff Fitzpatrick, managing director of human resource development and ICT training company Walker Hall Associates, based at Stockton.

He said: "If Walker Hall were able to take over that contract, I could employ the two business advisers employed by the TAD centre to do that work. Allowing this to happen would give continuity to people looking to start their own business."

Jonathan Lamb, marketing operations manager for Business Link Tees Valley, was sympathetic, but said: "We cannot give a definite time as to when a decision will be made. We realise customers and the business support network need answers as soon as possible."

Middlesbrough Council owns the Berwick Hills centre, which was funded by central government and Europe, but grant conditions limit the use of the building to training purposes. Failure to do so would result in some grant money being repaid - and that would be with ratepayers' cash.

All of which means the council is in no better position than Tad Centre Ltd as to what the building can be used for.

However, the Gazette can reveal the council is looking hard at the hotel and catering side of the centre, in which most people were employed. Plans are still at an early stage but if they come to fruition, these people could be re-employed at the centre.

But Paul Slocombe, the council's director of finance, said: "The council waived its rights to be a preferential creditor, thus showing its support for the centre, and we don't wish to renege on that. We are looking at various aspects of the existing company and working hard on making a way forward."

He added: "We must retain an element of economic development and training. We have been talking to various partners trying to secure the centre's long-term future, providing services in line with the training and development aspects.

"I believe we should be able to make more positive information available by the end of March.

"A lot of organisations have expressed an interest in the centre, all in line with its aims."

* To read an archive of Evening Gazette stories on the TAD centre log on to icteesside/tadcentre